Record $4bn Kazkhstan bond sale as Greek deal calms markets

Kazakhstan bond sale: Kazakhstan put a record $4bn of bonds up for sale  this month, the first among developing nations to take advantage of the calming effect of Greece’s deal with creditors. The central Asian country is selling $2.5bn in 10-year bonds at 285 basis points over Treasuries and $1.5bn  in 30-year notes at 335 basis points over their U.S. equivalent, according to a report in Bloomberg.
Kazakhstan comes back to the international market after raising $2.5bn in 10-year and 30-year bonds in October. The country is the first emerging-market sovereign to tap international capital markets after Gabon sold $500m of 10-year notes last month. Developing-nation dollar bonds have rallied this month, with the average yield falling 20 basis points, according to a Bloomberg gauge.
“The issuance window is opening and the Kazakhstan deal will be a test of primary-market appetite,” Mark Baker, who helps oversee $1.5bn in emerging-market debt at Standard Life Investments Ltd. in London, said by e-mail. “I expect demand for both tranches to be strong as the government seems willing to pay up for the certainty of getting the deal done.”

Source: Bloomberg